London property prices double the national average
House prices in London are almost double the average price for England and Wales, according to a report by estate agent Chesterton Humberts.
The group's latest house price poll of polls, which brings together the leading house price indices, reveals house prices in the capital as 1.94 times more expensive than the rest of the country.
The gap between the most expensive and least expensive continues to diverge. The five most expensive regions in England and Wales have increased by 3.4% since the start of the year, while prices in the cheapest five decreased by 5.1%.
Over the last month, house prices in the capital rose by 0.2%, adding an extra £818 to the value of the average property. Prices fell in every other English region, according to the estate agent.
The quarterly Nationwide regional house price index also reports soaring London property prices, with prices up 2.1% year-on-year. In addition, property prices in the capital have increased 17% over the past five years, compared to an increase of 1.3% across the UK as a whole, according to the building society's report.
Robert Bartlett, CEO of Chesterton Humberts, says: "What also sets London out from the rest of the crowd is the fact that house prices were higher in March 2011 than they were in March 2010.
"The typical price of a house in London – £338,583 – is 3.9% below the highest ever price recorded for the capital as a whole."
Prices rises likely
Meanwhile, house price data from Assetz House Price Watch released today shows UK property prices have increased by 0.67% since the start of the year. The average property now costs £197,153.
Stuart Law, chief executive of Assetz, says he expects prices to continue to increase going forward.
"These factors, combined with limited supply of property and improving mortgage availability, will continue to deliver an upwards curve in house price growth this year."
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).
Everything you own: all your assets (property, cars, investments, savings, insurance payouts, artwork, furniture etc) minus any liabilities (debts, current bills, payments still owed on assets like cars and houses, credit card balances and other outstanding loans). When you’re alive this is called your wealth; when you’re dead, it becomes your estate.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.